The "volatile and reactive nature" of Australian involvement in the Pacific undermines the effectiveness of its policies, the report finds.

Dr Schultz said the situation was exacerbated by the low level of importance placed on Pacific issues within the Department of Foreign Affairs and Trade.

"Within the bureaucracy, Pacific island desks have rarely been considered prestigious places to work and have consequently attracted few ambitious staff," he said.

"Diplomatic postings in the Pacific islands have historically been offered to personnel who are either young or approaching retirement.

"Australia needs to find a way to maintain strong and ongoing relationships with Pacific island nations that will withstand the inevitable disturbances that occur.

"One first step would be to upgrade the status of Parliamentary Secretary for Pacific Island Affairs, Richard Marles, to that of a dedicated minister, with greater departmental resources and a higher public profile," Dr Schultz said.